Finance

Finance Chapter 13 1. Operating leverage is change in sales (small), which triggers a change in operating income. They be caused by fixed cost in the operation firm. A firm with a high operating leverage exit see an EBIT increase and sales. The negative aspect is if the unit sales drop EBIT will decrease by a parting greater than sales. 2. Yes, the total story of business risk that a company faces is a function of both sales and the degree of operating cost. 3. Financial leverage is the additional volatility of clear up income caused by presence of fixed cost funds in the firms capital structure. Financial leverage post be volatility of the NI if the income changes.

There is always a percentage of business risk involved. 4. I believe the majority of your local mom& pop stores, mainly smaller stores with limited customer. 5. Major corporations such as Food social lion and Sear Roebuck. 6. Publicly owned corporations that has been brought out by in...If you destiny to get a full essay, order it on our website: Ordercustompaper.com

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